Chapter 1Economics is about decisions. Either make decisions on basis of rules or consequences. Usually economics decisions are based on cost-benefit. When you buy a good, you get benefit but you are giving up income that can be used for something else.Then is when cost comes.Why do we have to make decisions from an Economic perspective?1.Wants(desires)are virtually unlimited2.Resources are limitedconstraint*Then we have to make choices.The Economics way of decision making is not they only way but is an option.Scarcity means that society has limited resources and therefore cannot produce all the goods and services people wish to have.Economics is the study of how society manages its scarce resources. Economists analyze forces and trends that affect the economy as a whole, including the growth average income, the fraction of the population who cannot find work, and the rate in which prizes are rising.
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